Amstar Corporation v. Domino's Pizza, Inc. And Atlanta Pizza, Inc., Pizza Enterprises, Inc. And Pizza Services, Inc., Hanna Creative Enterprises, Inc.

615 F.2d 252
Court of Appeals for the Fifth Circuit·Decided May 2, 1980·No. 79-3650·Published·Cited by 379 cases

Opinion

AINSWORTH, Circuit Judge:

Amstar Corporation brought this suit asserting trademark infringement and unfair competition against Domino’s Pizza, Inc. (DPI) and several of its franchisees 1 to enjoin their use of Amstar’s federal registration of the “Domino” trademark. The complaint is based on allegations that defendants’ use of the mark “Domino’s Pizza” in connection with the sale of fast-food delivered hot pizza pies constitutes trademark infringement and a false designation of origin or representation in violation of the Trademark Act of 1946, 15 U.S.C. § 1051 et seq.; 2 also that said use constitutes unfair competition in violation of the *255 Georgia Uniform Deceptive Trade Practices Act, Ga.Code Ann. § 106-701 et seq., and dilutes the distinctive quality of plaintiff’s mark “Domino” in violation of the Georgia anti-dilution statute, Ga.Code Ann. § 106-115. 3 Defendants denied that plaintiff was entitled to any equitable relief, asserted trademark misuse by plaintiff, and counterclaimed for cancellation of plaintiff’s registration of the “Domino” mark for salt. 4 The district court ruled in favor of plaintiff, dismissed defendants’ counterclaim, and permanently enjoined defendants’ use of the names “Domino” or “Domino’s Pizza.” Defendants then filed this appeal. We reverse because we find that the district court’s decision was fundamentally erroneous since it was predicated on a holding that there was a likelihood of confusion between the use of “Domino’s Pizza” by defendants in connection with pizza store services and the use of “Domino” by plaintiff in connection with the sale of sugar and individual packets of condiment items.

I. Background of Dispute

Amstar Corporation holds several federal registrations for the widely known “Domi *256 no” trademark, 5 and the mark has been used since the turn of the century on plaintiff’s various sugar products. Since 1965, plaintiff has also packaged single-serving (portion-control) envelopes of salt, pepper, sugar, mustard, ketchup, mayonnaise, jams and jellies, salad dressings, taco sauce, honey, cranberry sauce, tartar sauce and table syrup under the “Domino” mark. Plaintiff has spent more than $54 million since 1947 in advertising and promoting its “Domino” products, and as a result there is wide public recognition of the mark as a source of sugar products. Amstar’s non-sugar, single-serving condiment packages introduced in 1965 have become the nation’s largest line of portion-control items, with sales currently running at a rate of about $14 million per year.

Defendant DPI is the nation’s largest chain of fast-food delivered pizza pie outlets, with 287 stores in 30 states and current sales exceeding $43 million annually. The chain has used the name “Domino’s Pizza” since early in 1965. Prior to that date, the pizzeria from which the chain grew was known as “Dominick’s,” named after its founder, Dominick Devarti. Devarti sold his pizzeria located in Ypsilanti, Michigan to Thomas Monaghan in December of 1960. In 1963 Devarti withdrew his permission to use the name “Dominick’s,” and for an interim period Monaghan called the store “Ypsilanti Dominick’s.” During this period Monaghan searched for a suitable new name for his pizzeria. In 1965 an employee suggested the name “Domino’s Pizza,” and Monaghan adopted the name immediately. At trial, Monaghan stated that he selected the name because it sounded Italian, it resembled “Dominick’s,” and he was unaware of any other pizzerias using the name. The company initially prospered, and in 1967 the first “Domino’s Pizza” franchise was sold. By the end of 1969, there were 42 “Domino’s Pizza” stores in operation in three states.

The plaintiff first became aware of DPI on June 24, 1970 when defendants’ “Domino’s” and “Domino’s plus design” marks were published in the Official Gazette of the Patent Office, pending registration of the marks by the U. S. Patent Office. Pursuant to 15 U.S.C. § 1063, plaintiff filed notices of opposition to registration of the marks. DPI at the time was in serious *257 financial difficulty, and the oppositions were not answered. Registration of the marks was therefore refused by the Patent Office.

In early 1971 plaintiff’s counsel wrote to DPI’s predecessor, Domino’s Inc., requesting that the “Domino’s Pizza” mark be changed. Domino’s Inc. did not respond to the letter, and plaintiff took no further action at that time. Plaintiff did, however, order credit reports on DPI for the next three years which were used in monitoring DPI’s business.

In 1972 and 1974 DPI again sought to register the trademark “Domino’s Pizza” with the U. S. Patent Office. The mark was passed for publication in the Official Gazette of the Patent Office on each occasion, signifying that an examiner of the office had concluded that the mark was entitled to registration, 15 U.S.C. § 1062(a). Plaintiff filed notices of opposition to each of the foregoing applications, and defendant withdrew each application. Plaintiff ultimately filed this suit against DPI in September 1975.

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Amstar Corporation v. Domino's Pizza, Inc. And Atlanta Pizza, Inc., Pizza Enterprises, Inc. And Pizza Services, Inc., Hanna Creative Enterprises, Inc., 615 F.2d 252 (5th Cir. 1980).

615 F.2d 252 (Amstar Corporation v. Domino's Pizza, Inc. And Atlanta Pizza, Inc., Pizza Enterprises, Inc. And Pizza Services, Inc., Hanna Creative Enterprises, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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